New Delhi Sep 1 (KNN) It is critical for Indian manufacturers to adopt advanced manufacturing to ensure success of the ‘Make in India’ initiative, said a report adding that currently only 10% of companies have already adopted advanced manufacturing, while 80% plan to adopt the same by 2020.

Tata Strategic Management Group, the management consulting arm of  the  Tata  Group, has unveiled  a report  on readiness  of Indian manufacturing  to  adopt advanced manufacturing trends in collaboration with FICCI.

The report is based on a first of its kind survey conducted to gauge readiness of Indian manufacturing to adopt advanced manufacturing. It highlights the industry’s perspective through a survey of business leaders (including board members, CXOs and other senior leadership) of more than 50 leading engineering companies in India.

Under  ‘National  Manufacturing  Policy’  (NMP),  the  government  envisages  to  increase  the contribution of manufacturing from ~15% to 25% of GDP by 2022. ‘Make in India’ is positioning India as a global manufacturing hub. Advanced manufacturing will enable  Indian  manufacturers  to  not only  be  cost  competitive but  also  enable  access  to  developed  markets  through  technologically advanced products.

Thus it is critical for Indian manufacturers to adopt advanced manufacturing to ensure success of the ‘Make in India’ initiative. The report identifies select focus areas for the manufacturing   industry to   compete   at   the   global   level through   adoption   of the advanced manufacturing trends.

The  report identifies four  key  trends  that encompass  several  of  these  technologies, namely –Additive  Manufacturing,  Advanced  Robotics,  Industrial  Internet  of  Things  (IIOT)  and Augmented Reality.

As per the report, the industry perceives productivity improvement and quality consistency as the most critical advantages of advanced manufacturing. It also adds that large and mid-sized companies (revenue more than INR 250Cr) consider advanced manufacturing more relevant to their businesses as compared to smaller companies.

It also said that currently only 10% of companies have already adopted advanced manufacturing, while 80% plan to adopt the same by 2020. The adoption is expected to be led by MNCs and large Indian companies and finds that the Indian family owned companies have lower willingness to adopt advanced manufacturing with more than half the companies planning to adopt only after more than 3 years. It also highlights that remaining competitive vis-à-vis peers is a primary driver for adoption while quantifying return on investment (RoI) is cited as the most critical hindrance for adoption.

The  report  spells  out  imperatives  for  the  stakeholders and recommends  benchmarking  with  global companies   and collaborative   approach for   the   Industry   to   hasten   adoption   with   optimal investments.  It further highlights the need  to  drive  awareness  especially  among  SME  sector  to  the industry bodies and recommends special focus through skilling initiatives and indigenous technology development to the government and expects technology providers  to facilitate ecosystem for wide spread adoption.

Commenting on the report, Shripad  Ranade,  Practice  Head –Automotive  &  Engineering,  Tata Strategic Management Group, said, “The changing global and Indian scenario has made it important for   the   industry   to   consider   leapfrogging   towards   the   advanced   manufacturing   trends.   It   is imperative  for  stakeholders  to  improve  the  adoption  by  focusing  on  driving  awareness  of  these trends,   emulating   global   best   practices,   forging   industry-academia   connect   and   up-skilling workforce”

Abhishek   Bagwe,   Engagement   Manager –Engineering   &   Infrastructure,   Tata   Strategic Management Group, added, “The advanced manufacturing trends will have far reaching impact on Indian manufacturing.  It has potential to alter business models of many companies.  MNCs and several large Indian companies have already taken steps in the right direction. The Indian SME sector also needs to step up before it is too late.” (KNN Bureau)